In the fourth quarter of 2017, there were 5,773 condominium apartment sales reported in the Greater Toronto Area (GTA), a decline of 15.4 per cent compared to the last three months of 2016, according to the Toronto Real Estate Board (TREB).
Over the same period, new condo apartment listings increased by 9.8 per cent to 8,186. Although sales were down compared to listings, market conditions still remained tight, with a sales-to-new listings ratio of 70 per cent.
“Demand for condominium apartments remained strong relative to listings in the fourth quarter,” said Tim Syrianos, TREB president, in a press release. “Even with the uptick in listings, which was certainly welcome, there was enough competition between buyers to prompt double-digit annual rates of price growth. This points to the fact that we still do have a supply problem in the GTA that needs to be addressed to ensure the long-term sustainability of the marketplace.”
The average selling price for a condominium apartment in the GTA climbed 17.9 per cent year-over-year in the fourth quarter to $515,816. Although this annual rate of growth was down compared to earlier in 2017, the condominium apartment segment was still the leader in price growth during the second half of the year.
“Seller’s market conditions remained in place for the condominium apartment market segment in the fourth quarter. Based on price point, this housing type remains top of mind for many first-time buyers,” added Jason Mercer, TREB’s director of market analysis. “In addition, as home prices have grown year-over-year, some buyers who initially may have considered the purchase of a low-rise home have chosen to purchase a condo apartment as well.”